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Sponsor & NIL Safe Harbor Language

Sponsorship Disclosure, NIL Compliance, and Brand Safety on Fanz®

Effective Date: February 10, 2026

This Sponsor and NIL Safe Harbor Language document ("Policy") establishes the rules, disclosures, and compliance requirements governing sponsorships, Name, Image, and Likeness (NIL) deals, and brand partnerships on the Fanz® platform. This Policy is designed to protect athletes, sponsors, and the Fanz® community while maintaining compliance with FTC regulations and applicable state and federal NIL laws. This Policy is part of the Fanz® User Agreement.

This Policy is provided by Fanz® LLC, Colorado 80550, USA.

1Sponsorship Disclosure Requirements

1.1 Required Disclosures

All sponsored content, paid partnerships, and material connections between content creators and brands must be clearly and conspicuously disclosed in compliance with FTC Endorsement Guides (16 CFR Part 255). The following disclosures are required:

  • Paid Sponsorships: Any content for which the creator, athlete, or user receives monetary compensation must include "#ad" or "#sponsored" using the Fanz® Paid Partnership label.
  • Free Products or Services: Content featuring items received at no cost must include "#gifted" even if no additional payment was made.
  • Affiliate Relationships: Content containing affiliate links, discount codes, or referral mechanisms must include "#affiliate" disclosure.
  • NIL Partnerships: Athlete content created as part of a NIL deal must include "#NILdeal" or "#NILpartner" in addition to standard sponsorship disclosures.
  • Employee or Ownership Interests: Users who are employees, officers, or equity holders in a company must disclose that relationship when posting about that company's products or services.

1.2 Placement and Format

Disclosures must meet the following placement and formatting requirements:

  • Disclosures must appear at the beginning of the post caption or as a persistent overlay on video content. Disclosures buried at the end of a caption, below a "more" fold, or in hashtag clouds are insufficient.
  • Disclosures must be in the same language as the primary content.
  • For video content, disclosures must be both visual and audible (spoken and displayed on screen) for the first five (5) seconds of the video.
  • For livestream content, disclosures must be displayed in a persistent banner and verbally stated at least once every fifteen (15) minutes.
  • Creators are responsible for clearly labeling paid content with "#ad" or "#sponsored" and any disclosure required by the FTC Endorsement Guides. Fanz® may add disclosure-labeling tools over time; until then, creators must add these disclosures themselves.

1.3 Platform Enforcement

Fanz® reviews reported content and may review content for sponsorship-disclosure compliance. Content identified as potentially sponsored but lacking proper disclosure may be:

  • Temporarily restricted from recommendation algorithms pending review
  • Flagged for creator notification with a request to add appropriate disclosure within twenty-four (24) hours
  • Subject to removal if disclosure is not added within the specified timeframe
  • Recorded as a disclosure violation in the creator's compliance record

2NIL Compliance Framework

2.1 Scope

This NIL Compliance Framework applies to all Name, Image, and Likeness activities conducted on or facilitated through the Fanz® platform, including deals involving:

  • Collegiate Athletes: Current student-athletes at NCAA, NAIA, NJCAA, or other collegiate athletic association member institutions.
  • Professional Athletes: Current or former professional athletes in any league or sport who engage in NIL activity on the Platform.
  • Minor Athletes: Athletes under the age of eighteen (18) who participate in NIL deals through the Platform, subject to additional protections and parental/guardian consent requirements.

2.2 Platform Role

Fanz® operates as a facilitator, not an agent, in NIL transactions. Specifically:

  • Fanz® provides the technology platform and marketplace through which athletes and brands may connect, negotiate, and execute NIL deals.
  • Fanz® does not act as an agent, manager, financial advisor, or legal representative for any athlete or brand.
  • Fanz® does not negotiate deal terms on behalf of either party.
  • Fanz® does not guarantee the performance, completion, or outcome of any NIL deal.
  • Athletes and brands are encouraged to seek independent legal counsel before entering into NIL agreements.

2.3 Athlete Eligibility

Athletes participating in NIL deals through the Fanz® platform must meet the following eligibility requirements:

  • Completion of Fanz® identity verification (KYC) process
  • Submission of applicable tax documentation (W-9 or W-8BEN)
  • For collegiate athletes: attestation that the proposed NIL activity complies with their institution's NIL policy and applicable athletic conference rules
  • For minor athletes: verified parental or legal guardian consent
  • For athletes with agent representation: disclosure of the agency relationship and confirmation that the agent has been informed of the Platform activity
  • Good standing on the Fanz® platform with no active content policy violations

3State NIL Law Compliance

NIL laws and regulations vary significantly by state. As of the effective date of this Policy, more than thirty (30) states have enacted NIL legislation with varying requirements regarding disclosure, institutional involvement, prohibited categories, and athlete protections.

Athletes participating in NIL deals on the Fanz® platform are solely responsible for ensuring their compliance with the NIL laws of the state(s) in which they reside, attend school, or compete. This responsibility includes but is not limited to:

  • Understanding and complying with their state's NIL statute and any implementing regulations
  • Disclosing NIL deals to their institution's compliance office as required by state law or institutional policy
  • Ensuring that NIL activities do not conflict with existing team, conference, or institutional agreements
  • Complying with any state-specific restrictions on deal categories (e.g., some states prohibit NIL deals with alcohol, tobacco, gambling, or adult entertainment companies)
  • Maintaining records of all NIL agreements and compensation as required by applicable law

Fanz® provides general informational resources regarding state NIL laws but does not provide legal advice. Athletes should consult with qualified legal counsel familiar with the NIL laws applicable to their specific circumstances.

4No Implied Endorsement

Athletes participating in NIL deals on the Fanz® platform must not create content that implies endorsement by their educational institution, athletic team, conference, or league unless such endorsement has been explicitly authorized in writing by the relevant organization.

Specifically:

  • Institutional Uniforms and Marks: Athletes may not wear institutional uniforms, display institutional logos, or use institutional facilities in NIL content without written authorization from the institution. This includes game jerseys, practice gear, and any apparel bearing institutional marks.
  • Team References: NIL content may reference an athlete's team affiliation in a factual manner (e.g., "starting quarterback at [University]") but may not imply that the team or institution endorses the sponsor's product or service.
  • Venue and Facility Use: NIL content may not be filmed or produced at institutional athletic facilities without written permission from the institution.
  • Group Likeness: NIL deals involving multiple athletes from the same team must not create the impression of an institutional endorsement or official team sponsorship.

Fanz® reserves the right to remove or restrict content that, in its reasonable judgment, creates a misleading impression of institutional or league endorsement.

5Brand Safety Controls

5.1 Content Adjacency

Fanz® maintains content adjacency controls to ensure that sponsored content and NIL deal content does not appear alongside content that could damage the brand or athlete's reputation. These controls include:

  • Automated content classification that prevents sponsored posts from appearing next to flagged, controversial, or policy-violating content
  • Keyword and category exclusion lists that sponsors may configure for their campaigns
  • Real-time content monitoring during live events and trending discussions
  • Emergency content adjacency overrides that allow brands to pause campaign visibility during sensitive events

5.2 Athlete Protection

Fanz® is committed to protecting athletes participating in NIL deals on the Platform. The following protections are provided:

Opt-In Model

All NIL deal participation is strictly opt-in. Athletes are never auto-enrolled in campaigns or deals. Athletes must affirmatively accept each deal before any content obligations arise.

Deal Review Period

Athletes are given a minimum of forty-eight (48) hours to review any proposed deal terms before being required to accept or decline. During this review period, athletes are encouraged to consult with legal counsel, agents, or institutional compliance offices.

Content Approval

Athletes retain the right to review and approve all content associated with their NIL deals before publication. Brands may not publish content featuring an athlete's name, image, or likeness without the athlete's prior written approval.

Right of Withdrawal

Athletes may withdraw from a NIL deal at any time if the brand engages in conduct inconsistent with the athlete's values, the deal terms are materially breached, or continued association would reasonably harm the athlete's reputation. Withdrawal rights and obligations are specified in the individual deal agreement.

Privacy Protections

Athlete personal information, including contact details, academic records, financial information, and private communications, is protected under the Fanz® Privacy Policy and will not be shared with sponsors or brands without the athlete's explicit consent.

5.3 Sponsor Protection

Fanz® also provides protections for sponsors and brands participating in the platform's NIL and sponsorship ecosystem:

  • Brand Safety Scoring: All creators and athletes are assigned a brand safety score based on content history, audience demographics, and compliance record. Sponsors may set minimum brand safety thresholds for their campaigns.
  • Content Compliance Monitoring: Fanz® monitors sponsored content for compliance with deal terms, disclosure requirements, and platform policies.
  • Performance Verification: Campaign metrics (impressions, engagement, reach) are verified through Fanz® analytics systems to prevent inflated or fraudulent reporting.
  • Morality Clause Enforcement: Fanz® supports contractual morality clauses and will cooperate with sponsors in enforcing deal termination provisions triggered by athlete misconduct.

6Platform Oversight and Audit

6.1 Automated Safeguards

Fanz® employs automated systems to maintain compliance across all sponsorship and NIL activity on the Platform:

  • Disclosure Review: Review processes and user reporting used to identify sponsored content and check for required disclosures.
  • Brand Safety Scanning: Real-time content analysis to prevent brand-unsafe adjacency and flag potential brand safety issues.
  • Fraud Detection: Algorithms that identify artificially inflated engagement metrics, fake followers, and other fraudulent activity that could compromise campaign integrity.
  • Compliance Alerts: Automated notifications to athletes, creators, and sponsors when potential compliance issues are detected.

6.2 Human Review

In addition to automated safeguards, Fanz® maintains a dedicated compliance team that conducts:

  • Manual review of flagged content within twenty-four (24) hours of automated detection
  • Periodic spot-check audits of active sponsorship and NIL campaigns
  • Investigation of user reports related to disclosure, brand safety, or NIL compliance concerns
  • Escalation of complex compliance matters to legal counsel

6.3 Audit Trail

Fanz® maintains comprehensive audit trails for all sponsorship and NIL activity on the Platform. Records include:

  • Deal creation, modification, and completion records
  • Content publication and disclosure history
  • Compliance review outcomes and enforcement actions
  • Payment and financial transaction records
  • Communication logs between athletes, brands, and the Fanz® compliance team

Audit records are retained for a minimum of seven (7) years from the date of creation, consistent with applicable regulatory retention requirements. Records may be produced in response to lawful legal process or regulatory inquiry.

7Compliance Assurance

Fanz® is committed to maintaining the highest standards of compliance across all sponsorship and NIL activities. The following compliance assurance measures are in place:

  • Quarterly Compliance Reports: Fanz® produces quarterly reports summarizing platform-wide compliance metrics, including disclosure rates, enforcement actions taken, brand safety incidents, and NIL deal volumes. Summary reports are available to stakeholders upon request.
  • Annual Compliance Audit: Fanz® engages an independent third-party auditor to conduct an annual review of the platform's sponsorship and NIL compliance program. Audit findings and recommendations are incorporated into platform policy updates.
  • Compliance Dashboards: Sponsors and athletes with active deals have access to real-time compliance dashboards that display disclosure status, brand safety scores, campaign metrics, and any flagged compliance issues related to their campaigns.

8Safe Harbor Limitations

Important Notice

This Policy constitutes a good faith framework designed to facilitate compliance with applicable sponsorship, advertising, and NIL laws and regulations. This Policy is not legal advice and should not be relied upon as a substitute for professional legal counsel.

Specifically, users, athletes, sponsors, and brands should understand that:

  • Compliance with this Policy does not guarantee compliance with all applicable federal, state, and local laws and regulations.
  • Fanz® does not warrant or represent that following this Policy will protect any party from legal liability.
  • NIL laws are evolving rapidly, and this Policy may not reflect the most current legal requirements in all jurisdictions.
  • Individual circumstances may require additional compliance measures beyond those described in this Policy.
  • Fanz® is not liable for losses, penalties, or damages arising from a user's, athlete's, or sponsor's failure to comply with applicable laws, even if that party relied on this Policy.

All parties are strongly encouraged to seek independent legal counsel regarding their specific sponsorship and NIL activities.

9Contact

For questions, concerns, or support related to this Policy, sponsorship compliance, or NIL activities, please contact the appropriate team:

NIL Support

nil@fanz.us

Sponsor Relations

sponsors@fanz.us

Mailing Address

Fanz® LLC
Colorado 80550, USA

By using Fanz® for sponsorship or NIL activities, you acknowledge that you have read, understood, and agree to be bound by this Sponsor and NIL Safe Harbor Language as part of the Fanz® User Agreement.

Effective Date: February 10, 2026